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· U.S. poultry growers to benefit from China's protein shortage, industry expert says
· Hundreds of millions of chickens at risk of being wiped out with much of China locked down due to virus
U.S. poultry growers to benefit from China's protein shortage, industry expert says
Poultry production worldwide is set to increase
By Luis Vieira, Successful Farming
Agriculture.com - 2/5/2020
ATLANTA, Georgia -- What's the biggest result of the spread of African Swine Fever, an increased demand for poultry production around the world, according to one world protein specialist.
Nan-Dirk Mulder, a Global Protein Specialist for Rabobank, presented the lecture “Insights, risks and opportunities within the Poultry Industry” recently at the International Producing and Processing Expo.
In his presentation, Mulder laid out a case that the biggest impact of the swine fever is the increased interest in poultry markets. Mulder sees the drop in hog production resulted in more demand for poultry and higher chicken production all over the world.
“It is the biggest disruptive period in many years. Since 2018, ASF has spread through China resulting in a production drop (of pork) of 25% in 2019. An additional 50% drop is expected this year in China. This is huge impact on global markets because China has a shortage of proteins. The disease has already spread to other parts of Asian like Vietnam, Philippines, Laos,” said Mulder.
“We need to produce more protein. We need more supply and there will be more opportunities for investment in poultry. The Asians are investing first and already China has added 50% more investment in chicken production, Vietnam is growing from 10% to 15%,” added the global protein specialist.
While Brazil is the most competitive nation in the poultry market, with the strongest growth of exports in recent years, Mulder is very optimistic about the opportunities for U.S. producers...
Hundreds of millions of chickens at risk of being wiped out with much of China locked down due to virus
· The shutdowns in several provinces have hit supply chains, with transport restrictions preventing much needed animal feed such as soybean meal from getting delivered to poultry farms, according to analysts and Chinese state media.
· Already, farmers in Hubei — the epicenter of the virus outbreak — are in a “very distressed” situation, wrote Hubei’s poultry association in a letter to the national-level China Animal Agriculture Association last week.
· This comes on the back of China’s African swine fever crisis, which has basically ravaged its hog population and sent pork prices rocketing in the past year.
Weizhen Tan, CNBC
Feb 5 2020
Following its pork crisis, China’s poultry farmers are now in dire straits because of the coronavirus outbreak. Millions of chickens may soon perish in coming days as much-needed feed is not getting to them in time.
The shutdowns in China’s provinces have hit supply chains, with transport restrictions preventing much needed animal feed such as soybean meal from getting delivered to poultry farms, according to analysts and Chinese state media.
As the outbreak spread, Chinese authorities have shut roads and highways, and even halted long-distance buses.
The supply of soybean meal is short to begin with, said financial services company INTL FCStone in a note on Monday, adding that the extension of business shutdowns will exacerbate the shortage.
“This is going to create massive problems in the livestock sector. Even if a local plant has resumed operations, it will still be longer than normal for delivery due to logistics problems (lack of labor, road closures, road checks),” wrote Darin Friedrichs, senior Asia commodity analyst at company INTL FCStone.
“I think in many regions the transport issue (is impacting) the chicken production. It is expected that not only Q1 production but Q2 would be impacted,” Chenjun Pan, senior analyst at Rabobank, told CNBC.
Already, farmers in Hubei — the epicenter of the virus outbreak — are in a “very distressed” situation, Hubei’s poultry association wrote in a letter to the national-level China Animal Agriculture Association last week.
The letter said transportation is basically paralyzed, and most large-scale farms will face severe shortage of feed soon, which will hit operations.
The China Animal Agriculture Association asked feed producers to...
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